The bill H.334 aims to limit the use of noncompete agreements and stay-or-pay provisions in employment contracts in Vermont. It introduces new legal language that defines "agreements not to compete" and establishes that such agreements are void and unenforceable, with specific exceptions for certain business transactions and partnerships. Additionally, the bill mandates that employers notify employees of any existing noncompete agreements that are now considered void. It also outlines employee rights regarding retaliation for exercising their rights under this section.

Furthermore, the bill addresses stay-or-pay provisions, which require employees to repay costs to employers upon separation from employment. It declares such provisions unlawful unless specific conditions are met, such as voluntary agreement by the employee and reasonable repayment amounts. Similar to the noncompete agreements, employers must notify employees of any existing stay-or-pay provisions that violate the new law. The bill emphasizes protections against retaliation for employees who choose not to enter into these agreements. The act is set to take effect upon passage.